The Santos port in São Paulo state anticipates advancing contracts valued at 18.5 billion reais (approximately US$3.3 billion) this year. However, legal concerns accompany this progress. Paulo Dantas from Castro Barros Advogados highlights that among the three major contracts, the lease contract for the container terminal is an absolute priority. "This will be the largest terminal at the port and will bring extremely significant investments for the expansion of the port structure, given the fact that we're expected to reach full operational capacity at the port by 2028. This is a contract that has to be offered urgently," he commented.
The government plans to offer a 5.6 billion reais leasing contract for the STS10 container terminal in the latter half of the year, pending resolution of legal issues. Officials aim to restrict current port operators from participating in the auction. Despite this, Denmark's Maersk has already filed a petition with Antaq, the waterways regulator, contesting the bidding restrictions. This situation also impacts other entities, including BTP, Santos Brasil, and DP World.
The leasing contract encompasses a 25-year agreement, requiring the construction of docking berths totaling 1,209 meters in length and accommodating at least three Panamax-class ships with a 17-meter draft. Santos, handling 25% of Brazil's foreign trade, processed 139 million tonnes last year.
In parallel, the ports and airports ministry announced a bidding process to expand and dredge Santos Port's access channel. With planned spending of 6.45 billion reais, this project is set to proceed to auction this year. "This project will increase the efficiency and capacity of port operations, allowing even larger ships to access Santos port," noted Ports and Airports Minister Silvio Costa Filho.
The auction model follows the approved structure for Paranaguá port in Paraná state, yet some government officials express skepticism about fully applying this model to Santos due to capacity and infrastructure differences.
In September, a 6 billion reais PPP contract for the Santos-Guarujá underwater tunnel is scheduled for auction. The 1.5 km tunnel, with 870 meters submerged, aims to ease port access and will feature lanes for various transportation modes. The project has attracted interest from both local and international infrastructure firms.
Paulo Dantas underscores the technical challenges in securing capable construction entities, suggesting the necessity of international expertise for successful execution.
Source: bnamericas
